Skip to main content

Scandinavian Tobacco Group announces financial ambitions and new flexible shareholder return policy ahead of Capital Markets Day

Written by Customer Service on . Posted in Public Companies.

Company Announcement
No. 17/2025

 

Copenhagen, 19 November 2025

Scandinavian Tobacco Group announces financial ambitions and new flexible shareholder return policy ahead of Capital Markets Day

Scandinavian Tobacco Group will launch its next five-year strategy, Focus2030, at the upcoming Capital Markets Day on 20 November 2025. The strategy aims to create a company that in 2030 has:

  • A sustainable and stable machine-rolled and smoking tobacco business primarily focused on Europe
  • A growing and increasingly attractive handmade cigar business anchored in the US, with a stronger global footprint
  • A bigger nicotine pouch business with even more upside in an attractive category

To support the execution of the Focus2030 strategy, the Board of Directors has today adopted the Group’s financial ambitions and a new shareholder return policy for the period.

The financial ambitions reflect the strategic initiatives embedded in the strategy, disciplined capital deployment, incremental earnings improvements and free cash flow generation, enabling attractive shareholder returns based on a new flexible shareholder return policy and a commitment to maintain a balanced leverage ratio.

The financial ambitions towards 2030 are:

  • Return on invested capital (ROIC) of at least 11% by end of 2030.
  • Compounded annual EBIT* growth by a low single digit percentage.
  • Free cash flow before acquisitions of at least DKK 1.2 billion in 2030.

* Organic EBIT before special items

The shareholder return policy is changed to dividend pay-out ratio policy based on a 40-60% pay-out against adjusted earnings per share supplemented by share buy-backs when the projected leverage ratio allows for this.  The distribution of excess capital will be based on a comparison of the projected leverage ratio against a target of 2.5 times.

Since its listing on the Copenhagen Stock Exchange in 2016, Scandinavian Tobacco Group has returned more than DKK 9 billion to shareholders in the form of dividends and share buy-backs. Scandinavian Tobacco Group is committed to continuing to deliver attractive shareholder returns through the same mechanisms going forward.

The Group will supplement the financial ambitions with annual guidance for reported net sales growth at local currencies, EBIT before special items, free cash flow before acquisitions and adjusted earnings per share.

As a part of the Focus2030 strategy and to support cost efficiency and earnings resilience, the Group intend to deliver about DKK 200 million in cost improvements as part of achieving the financial ambitions with full effect expected early in the strategy period.  The planning process will be initiated soon. Details of the programme will be communicated once the planning process has been finalised.  

CEO Niels Frederiksen: “We are excited to launch our Focus2030 strategy, and we are confident that it will create value for consumers, employees and shareholders. Even more importantly, we are creating a company that is even better positioned to drive value beyond 2030”

Scandinavian Tobacco Group will present the five-year strategy and the financial ambitions at the Capital Markets Day, which will be held as a livestreamed event only on 20 November 2025 from 14:00 to 16:30 CET.

Please click the link below for more details and to register your attendance.

https://www.st-group.com/investor/capital-markets-day-2025/

For further information, please contact:
Torben Sand, Director of IR & Communication, phone +45 5084 7222 or torben.sand@st-group.com
Eliza Dabbagh, IR and Communication, phone +45 5080 7619 or eliza.michael@st-group.com

Attachment

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.